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Clever Leaves First Colombian Cannabis Company Authorized to Grow Commercially

BOGOTA, Colombia, March 12, 2019 /PRNewswire/ -- Clever Leaves, a leading vertically-integrated Colombian licensed producer of pharmaceutical-grade medical cannabis serving the global market has become the first cannabis company authorized by Colombian regulators to commercially cultivate cannabis for medical purposes.

The Ministry of Justice in Colombia issued a resolution granting Clever Leaves the first quotas for the cultivation of medical cannabis, consisting of 175 mother plants, which in turn could be used for the propagation of plants for commercial use. This unique quota award paves the way for the commercialization of medical products for patients in Colombia and other geographies around the world where medical cannabis is legal for sale.

"This is the result of teamwork and a commitment to creating a new Colombian industry focused on healthcare and wellness, creating high value-added products, and promoting scientific and technological innovation. We are trying to build a company that will set the standard for the rest of the industry and we are very pleased to have already created hundreds of new employment opportunities for the people of Colombia. Every day, we continue building the medical cannabis sector, representing a unique opportunity for Colombia's future," said Andrés Fajardo, CEO at Clever Leaves.

According to Kyle Detwiler, CEO of Northern Swan Holdings, Inc. ("Northern Swan") the strategic capital partner behind Clever Leaves, "For those more familiar with the Canadian medical cannabis industry, this would be similar to becoming the first licensed producer receiving the license for sales, as opposed to the initial pack of licensed producers only licensed to cultivate. This is a tremendous milestone for Clever Leaves, once more demonstrating its leadership in Colombia as well as its potential to evolve into a global leader of the medical cannabis industry."

"Colombia has a favorable regulatory framework and the necessary political atmosphere for the sustained growth of the medical cannabis industry. The products that are currently being produced here have the enormous potential to revolutionize the industry and turn Colombia into the leading exporter of medical cannabis in the world," said Clever Leaves Co-Founder and Corporate and Regulatory Affairs Director, Julián Wilches.

Prior to obtaining the first commercial quota in Colombia, Clever Leaves also obtained research quotas for the cultivation of up to 30,000 plants as well as utilizing 514 kilograms of dried cannabis for the production of extracts. Clever Leaves was also the first Colombian cannabis company authorized by Health Canada to make an international shipment of medical cannabis, which it sent to Canada for testing in late February.

About Clever LeavesFounded in 2016, Clever Leaves is cultivating medical cannabis in the first phase of a 1.5 million square feet agricultural production facility which is compliant with Good Agricultural and Collection Practices ("GACP"). The Company began operating an EU Good Manufacturing Practices ("EUGMP")-compliant extraction laboratory in November 2018 which anticipates securing EUGMP certification in late 2019. Clever Leaves will produce approximately 29,000 kg and 77,000 kg of dried flower product in 2019 and 2020, respectively, which will be processed into approximately 2,900 kg and 7,700 kg of medical cannabis oil extract in 2019 and 2020, respectively. The Company is already recognized as a standard-bearer of job creation in Colombia with approximately 200 employees with plans to employ over 500 professionals by the end of 2019.

About Northern Swan Northern Swan is an investment firm focused on transformative investments in the international cannabis industry in geographies where the sector is federally legal. With offices in New York, Toronto, Bogota, and Frankfurt, Northern Swan invests in and assists emerging companies develop low-cost production capacity and distribution capabilities to improve distribution globally and generate brand value. Prior to founding Northern Swan, its management team has collectively invested in excess of $3 billion of capital at Blackstone, KKR, and Och-Ziff.

Forward Looking Information This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, the Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors.